British victims of terrorism abroad could get £1m payout

Britons caught up in terror attacks abroad could get up to £1million in compensation from the Government, under plans revealed today.

Ministers are considering setting up a fund for those injured in atrocities overseas. It would be the first time British victims receive such payouts.

The £250,000 cap for those in attacks on British soil could also be lifted. But campaigners fear the Government will go back on a commitment to make payments retrospective. Those injured in the Bali and the Mumbai attacks could be left without a penny.

Prime Minister Gordon Brown and Home Secretary Alan Johnson are said to be in favour of retrospective payments but face opposition from some of the Cabinet. A Whitehall source said: "We want to sort this."

Labour MP Ian McCartney said: "You cannot have two classes of citizen, where as soon as you put a toenail over the English Channel you are denied rights." Will Pike, 29, left unable to walk after the Mumbai bombings last year, said: "The overall cost would be £20million which, in the grand scheme of the war on terrorism, is not a lot."